Willis Lease Finance Corporation (WLFC) has posted record second-quarter total revenues of US$151.1 million and record quarterly pre-tax income of US$57.9 million. The company also announced its first regular quarterly dividend of US$0.25 per share, expected to be paid on August 21, 2024, with a record holder date of August 12, 2024. For the three months ended June 30, 2024, aggregate core lease rent and maintenance reserve revenues were at an all-time high of US$118.8 million, up 32% compared to US$89.8 million in 2023. The growth was predominantly driven by core, recurring lease and maintenance revenues associated with a strong, resurging aviation marketplace, with airlines leveraging the Company’s leasing, parts, and maintenance capabilities to avoid protracted engine shop visits.
Lease rent revenue was a record US$55.9 million in the second quarter of 2024, an increase of 2.7% compared to US$54.4 million in the second quarter of 2023. During the three months ended June 30, 2024, WLFC purchased equipment (including capitalised costs) totalling US$258.8 million, which consisted of three aircraft, 11 engines, and other parts and equipment for our lease portfolio. During the three months ended June 30, 2023, the company purchased equipment (including capitalised costs) totalling US$55.8 million, which consisted of nine engines and other parts and equipment for its lease portfolio.
WLFC reported maintenance reserve revenue of a record US$62.9 million in the second quarter of 2024, an increase of 77.6% compared to US$35.4 million in the same quarter of 2023, reflecting the high level of usage of our assets by our customer base. Engines on lease with “non-reimbursable” usage fees generated US$45.9 million of short-term maintenance revenues in 2024, compared to US$28.6 million in the prior year. There was US$17.0 million of long-term maintenance revenue recognised in the three months ended June 30, 2024, compared to US$6.8 million long-term maintenance revenue recognised for the three months ended 30 June 2023. As of June 30, 2024 and June 30, 2023, there were US$24.6 million and US$19.8 million, respectively, of deferred in-substance fixed payment use fees included in unearned revenue associated with engines on short-term leases. These deferred in-substance fixed payment use fees represent portfolio utilisation beyond the maintenance reserve revenues reflected in our unaudited consolidated statements of income.
Spare parts and equipment sales increased to US$6.2 million in the second quarter of 2024, compared to US$4.6 million in the second quarter of 2023. The increase in spare parts sales for the three months ended June 30, 2024 reflects variations in the timing of sales. Gain on sale of leased equipment was US$14.4 million in the second quarter of 2024, an increase of 223.4% compared to the comparable period, reflecting the sale of seven engines, eight airframes, and other parts and equipment from the lease portfolio. During the three months ended 30 June 2023, two engines and other parts and equipment from the lease portfolio for a net gain of US$4.5 million were sold.
The WLFC generated a quarterly record of US$57.9 million of pre-tax income in the second quarter of 2024, compared to pre-tax income of US$19.0 million in the second quarter of 2023. The Company paid a special dividend of US$1.00 per share in the second quarter.
